Chapter 18 - Inventory-My

Front

Which inventory costing method is based on actual cost of each particular unit of inventory? Options: Specific cost, FIFO, LIFO, Weighted average

Back

Specific cost

Front

Which inventory costing method assigns the cost of the oldest items in inventory to cost of goods sold?

Back

FIFO

Front

Which inventory costing method assigns the cost of the oldest items in inventory to ending inventory?

Back

LIFO

Front

Which inventory costing method requires calculation of a new average cost after each purchase?

Back

Weighted average

Front

We had two items costing $20 each. We buy two more at $25 each. We use FIFO and sell one. How much is cost of goods sold?

Back

$20

Front

We had two items costing $20 each. We buy two more at $25 each. We use LIFO and sell one. How much is cost of goods sold?

Back

$25

Front

If inventory costs are rising, what's a benefit of using FIFO?

Back

Higher net income

Front

If inventory costs are rising, what's a benefit of using LIFO?

Back

Lower income taxes

Front

How do we value inventory items on the balance sheet if bought at $6 each and current replacement cost is $7 each?

Back

$6/each

Front

What type of inventory control system does Drive 'n Go Motors use for continuously updated inventory?

Back

perpetual